As an industry-leading payroll solutions provider, it’s a question we get all the time.
Failing to complete IRS 941 Schedule B may result in serious fines. It’s these types of financial penalties that cost businesses hundreds (or thousands) of dollars per year!
This begs the question – what is the best way to complete the 941 Schedule B? What types of businesses are responsible for completing 941 Schedule B? Who is at fault when filing deadlines are missed?
In this article, we’ll provide you with a complete and comprehensive overview of the 941 Schedule B form. By reading this in-depth guide, you’ll have a much better understanding of major 941 Schedule B requirements, filing procedures, and more.
Overview: What is 941 Schedule B?
941 Schedule B requires employers to report income taxes, social security taxes, and medicare taxes withheld from employees’ paychecks.
File 941 Schedule B only if you meet the following criteria:
- Semiweekly schedule depositor who has accumulated $50,000 or more in employment taxes or accumulated $100,000 or more in tax liabilities
- Monthly schedule depositor who has accumulated tax liabilities of $100,000
An automated payroll system for small businesses will help you align with major local, state, and federal payroll filing requirements and due dates. In fact, a solution like ours makes it simple and easy to calculate earnings, deductions, and tax withholdings.
How to File 941 Schedule B
There are two options available to you when filing 941 Schedule B, including electronic filing and paper filing by mail. In this instance, an online payroll service reduces the overall risk associated with keeping up on major tax laws, regulations, and deadlines.
Here are the steps that you should follow to complete 941 Schedule B:
- Enter Your Employee Identification Number (EIN)
- Enter Your Business Name
- Enter the Calendar Year
- Under Report for this Quarter, Select Appropriate Quarter
- Enter Tax Liability for Each Month
For added context, the Internal Revenue Service (IRS) provides the following example:
Cedar Co. is a semiweekly schedule depositor that pays wages for each month on the last day of the month. On December 24, 2021, Cedar Co. also paid its employees year-end bonuses (subject to employment taxes). Cedar Co. must report employment tax liabilities on Schedule B for the fourth quarter (October, November, December) as follows:
Source: Internal Revenue Service
For quick access to 941 Schedule B: Report of Tax Liability for Semiweekly Schedule Depositor, you can click here.
Talk to a Payroll and Filing Expert at ConnectPay
To the uninitiated, filing 941 Schedule B can feel like a massive undertaking.
Our payroll and filing experts are here to help. The best way to ensure that your files are done on time and completed accurately is to interface with a specialist.
And if you’re thinking about migrating to a new small business payroll solution, we can help with that too. Unfortunately, most payroll service providers overcharge and underdeliver. It’s an issue that has resulted in thousands of 1-star reviews and unhappy customers. There has to be a better way, right?ConnectPay is more than a payroll provider. When you work with us, you know you will be connected with experts familiar with your local laws regarding 401ks, Workers’ Comp, and more. What’s more, we guarantee that any time you call during business hours, someone will answer the phone and address your questions - no games of phone tag required! Learn more about what ConnectPay can do for you!